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United Offshore 
Services, Ltd. 1999 
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United Offshore Services, Ltd.
   About Currency Trading
Facts, Features, Benfits And Most Asked Questions 
 
    The competitive pricing in the interbank foreign exchange market is now readily accessible on a 24-hour basis to a broader base of investors which used to be exclusive to the world’s large corporations and financial institutions. Individual investors and professional speculators are no longer limited to the currency futures markets which cannot offer the advantages that interbank foreign exchange transactions provide. 

    How big are the world’s currency markets?  
    Huge. According to a 1990 survey by the Bank of International Settlements, $650 billion per day of foreign exchange is traded around the globe. That is more volume than the New York Stock Exchange rings up in two months! 
     
    What liquidity is available in the FOREX?  
    By its very nature the FOREX is liquid. The product is cash and accounts can be settled every day. Only the time necessary to handle the paperwork of a transaction can slow down the receiving of funds requested from an account. Orders are executed and confirmed during a recorded phone call. Customers know immediately the rate at which the order is executed. The Company offering the Investment Services, serving as the leading broker, ensures that the order will always receive a single price execution. This "effective execution" is essential to meet the goal of maximized earnings and safety. Being the largest market in the world with over $1 trillion bought and sold daily (Compared to $10 billion a day on the NYSE), you are always able to liquidate your position. Unlike futures or the stock market, there is never a lack of a taker. There is always a domestic international or Central Bank ready to service your order.  
     
    Who does all that trading?  
    A wide range of players. major banks are most active, accounting for nearly 80% of all trading, according to the New York Federal Reserve Bank. But multinational companies account for billions of dollars of trading as well. Global money managers, individual speculators and tourists also are active. Keep in mind that trading is a 24-hour a day business. Spot foreign exchange of purchasing/selling currencies with the Company allows customers to protect their investments across international time zones by placing an order with the Service Company.  
     
    What are some of the features which mean benefits? 
    24-Hour Execution as we have just mentioned.  
    Also: 

    • Attractive Pricing. Foreign Exchange quotes are based on interbank market prices regardless of the transaction size. Prices are quoted on a net basis.  
    • Effective Execution was discussed above.  
    • Flexible Value Dates. Foreign exchange contracts opened can be rolled over daily for an indefinite period of time.  
    • Deliverable Contracts. Foreign exchange contracts are delivered upon payment of margin balance and are purchased/sold on a spot basis. Hence, such contracts do not have expiration dates and can be rolled over daily for as long as the corresponding margin requirements are maintained.  
    • Maximum Liquidity has been discussed.  
    • Profitability. One of the biggest fears among the equity players is the bear market. There is no such thing in the foreign exchange markets. Whether the U.S. Dollar reaches record highs or record lows the market is active and liquid. The foreign exchange market is concentrated in four major currencies: Deutschemark, Japanese Yen, British Pound, and Swiss Franc. These are all quoted against the U.S. Dollar, ensuring a high degree of efficiency.  
    • This tends to answer the question also of: "Which of the world’s currencies are the most important ones in traders’ eyes?" 28% of all trading is in the Mark; 23% is n the Yen of Japan and 13% in Pound Sterling of England. The Swiss Franc constitutes about 9% of the market. The balance is spread between the Australian Dollar, Canadian Dollar and the French Franc.  
    • Other financial markets tend to be fragmented among different issues and instruments, with much less liquidity available. The major foreign exchange instrument is spot, which generally matures in two business days. The profit may be realized that quickly. Even the long dated forward contracts mature faster and safer than most loans, the former bread-and-butter instruments for banks. That is why commercial banks have allocated significant resources to trade currencies. 
      
    How can I tell what is going on? 
    You will be provided access to daily, monthly and year-end records of your account transactions. Clear, simple and easy to read and fully updated, these reports will keep you fully informed on your account status.  
     
    Where does trading occur?  
    Most trading is done electronically, via bank to bank phone lines. There isn’t any dominant exchange that handles spot trading… the trading of currency for immediate delivery. Instead, activity during any 24-hour period migrates from one time zone to another, moving from Europe to the U.S., Australia, Japan, and then back to Europe. The Philadelphia Stock Exchange also does a sizable business in currency options.  
     
    Tell me about leverage and margin.  
    You can enjoy the benefits of leverage on contracts up to 100 times your initial deposit. With ½% of the absolute value of an interbank contract, you can enter the largest marketplace in the world. As long as you are able to maintain your margin requirements on the full contract value, you can remain indefinitely in the market. However, if the purchase option(s) incurs floating losses (unactualized losses) of 50% to 70% of the margin requirement, you will be required to bring up the margin requirements to 100% to stay in the market in order to comply with banking regulations.  
      
    Does anyone regulate currency trades?  
    Central banks such as the Federal Reserve Bank of the U.S., provide to some degree oversight. Futures trading, in particular, is watched by the Commodities Futures Trading Commission. But in general, the currency markets are much more lightly regulated than stock or bond trading. 
      
    Can countries control their exchange rates?  
    Not very well. World exchange rates have been left to float since 1971, thought members of the European Economic Community have tried to like their currencies for most of the past 20 years. But as certain European currencies become unusually strong or weak, authorities have been forced to change the targeted values of those currencies in what is known as "currency realignment."  
      
    Taxes and offshore operations. What is involved?  
    Most major corporations and banks do their currency trading offshore. The tax consequences are more favorable. If you have a company or trust offshore there will be no taxes collected and no reporting of any kind. As a servicing arm of an offshore corporation, the tax gains remain offshore under the jurisdiction of international corporate law. Reporting of taxable profits is strictly the responsibility of the client. Neither we, the Company nor the trader are responsible for reporting gains to any agency in any jurisdiction. Seek professional advice if you are not sure. 
      
    How much can I lose?  
    There are ways to limit the potential losses though the judicious use of "Stop Loss Orders." A stop loss order is a risk-reducing instrument which is widely used by speculators in the foreign exchange markets. Let us show an example: Expecting the Deutschemark to strengthen towards 153 against the U.S. Dollar, we buy the Deutschemark at 1.5540. As upside protection, we set a stop-loss at 1.5595 to limit our losses if the market moves against us. I the trade is successful and the Deutschemark appreciates, we will end up with a profit. However, if the Deutschemark weakens through our stop-loss point of 1.5595, our stop-loss is triggered. We are left with a trading loss. But we are only glad to take this small and affordable loss as opposed to potentially staggering loss we might have faced had we now put n a stop order loss. 
      
    Why do I need an offshore company, and IBC, to take advantage of the potential in the FOREX market?  
    You do not need or necessarily have to have an offshore company. We suggest the International Business Company because it offers much flexibility, especially when owned by an offshore trust of which you are a beneficiary. For details related to trusts and offshore companies, see http://www.offshoreworld.com. 
      
    If I do not form the offshore company, how can I open an account?  
    The approach we suggest accommodates those who do not have the otherwise required minimum of $35,000 to enter the program or they simply do not wish to commit that much at one time. If you want to open an account and not have a company, let us know. 
      
    When am I going to start making money on the FOREX? 
    Start today. 
      
    Why do I have to do business with your company?  
    You do not have to do business with our company. We offer certain services that are not available if you go directly into the FOREX market. You can find a company, evaluate their performance and ability, arrange your own leverage and do without the confidentiality of the offshore company and/or trust. Our approach provides you with an opportunity to enter the Forex Market with little capital. You can make money with us referring clients. We think we provide an valuable and meaningful service and would like to have you as our client. Foreign exchange is the backbone of all international capital transactions. The majority of deals are speculative. Even if we add tens of billions of dollars of daily bond switching, foreign exchange business is still ten time greater than is required for trade and investment purposes. In other words, for every trade or investment-related deal, there are nine speculative ones. Compared to the wafer-thin profit margins in other areas of commercial banking, the large profits from minor exchange movements in a matter of minutes seem too good to pass up. Trading volume has been growing at a rate of at least 25% per year since the mid 1980's. It is therefore not difficult to accept the proposition that foreign exchange is the world’s fastest growing industry. Foreign exchange is the backbone of all international capital transactions. The majority of deals are speculative. Even if we add tens of billions of dollars of daily bond switching, foreign exchange business is still ten time greater than is required for trade and investment purposes. In other words, for every trade or investment-related deal, there are nine speculative ones. Compared to the wafer-thin profit margins in other areas of commercial banking, the large profits from minor exchange movements in a matter of minutes seem too good to pass up. Trading volume has been growing at a rate of at least 25% per year since the mid 1980’s. It is therefore not difficult to accept the proposition that foreign exchange is the world’s fastest growing industry. 
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Welcome | Introduction| Currency Trading | Profit and Loss | Referral Program | Documents | Contact Us
    United Offshore Services, Ltd. 
    is Panamanian Company offering company formation and management services worldwide from offices at 5 King Street, Belize City, Belize, with the assistance of accountants and lawyers experienced in their disciplines. We are properly licensed to provide offshore services as licensed offshore practitioners in Belize. Email us at info@accesscard.com. We urge you to print out these Web pages in their entirety, including the forms, and study them carefully. We are not bringing you anything new. We just have a new way to bring the FOREX Market Opportunity to you.